Here’s my take on HubSpot $HUBS and Alphabet $GOOGL – April 5, 2024
Dan Fitzpatrick here at StockMarketMentor.com. I want to talk about HubSpot ( NYSE: HUBS ) because everybody’s been talking about it, at least they were yesterday.
You can see the stock really, really screamed yesterday after it was rumored that there’s some kind of report that good old Google or Alphabet, as it’s now called, may be prepping an offer to buy this company. You see how it ran up yesterday, it almost hit 700.00, and then came back about halfway closing location value, which is, where is it within the intraday high and the intraday low?
You will see it was right around the 50 percent mark, not terrible but not awesome either. Then today the stock gaps up, and it’s holding the gap pretty good. Rumors like this happen all the time. What’s really more important when it’s just a “rumor” and if it isn’t a formal announcement, guess what, it’s a rumor.
When this type of thing happens you see the stock really ramp up, that’s all well and good, but you can’t just assume that the rumor is true because the stock went up. A lot of times it’s manipulated. Believe it or not, there are planted rumors that go around the market so people can make money. I’ve found that what is really more important is the second day, and that’s today.
You will see a stock that runs up like this, and then sometimes the next day it pulls back down. These are all my lines, we were in a couple of days ago, and it totally lucked out on this one. I didn’t see this coming at all, I just looked at this 623.00, and it looked like a pretty good early entry to me. In fact,
I think I’d mentioned to people, you know I’m looking at this and it seems like one of these days it’s probably going to go higher. So we set our stop down here just to make sure. This was, I believe, just a little bit below here, so we gave it ample room to pull back about 6 percent or so. And so we got a good entry here, and we’re still long the stock.
The point that I’m making is, that when you see a trade like this, it pays to pay attention and not get so dogmatic that you just assume, because the stock is up, that the rumor is true and you’re getting in on a good deal. You may not be, we’ve seen that a ton of times before.
What’s most important is that you think about it and look and see what the price chart is overall telling you over the next few days. Then that is going to be a better trade for you because at least you have some kind of foundation of knowledge or at least some dang logic behind what you’re doing.
What I suspect, and I have no idea what’s going to happen, but my suspicion is, on Monday you are going to see something like this because, typically, mergers and acquisitions tend to be done over the weekend because that’s when the attorneys have a chance to sit down and talk and get things hammered out.
If this deal is going to happen, I bet it will even be announced on Monday. And I will say one more time, I could be wrong. I’m just explaining my logic to you, I’m not an expert in this stuff, I’ve just seen this happen a bunch of times, that’s all.
Free Chart